A record year for US tech stocks

March's sharp downturn in global markets prompted the Federal Reserve to announce "all possible measures" to support the economy by offering maximum incentives to fight the worst economic meltdown since the 30s. incurred at the end of March.

This year, Saxo welcomed more than 200 new clients and recorded further highs of activity as investors around the world turned to the financial markets as net buyers after the March crash. Vigorous activity continued throughout the year as more and more people took control of their investments into their own hands.

In the year of Covid-19, the best results and the highest trading volume were once again recorded by American technology companies. The strict lockdowns and the tendency to work from home were in line with their business models, as evidenced by the fact that the Nasdaq-100 went up by more than 2020% in 40.

Green energy

However, producers of electric vehicles turned out to be unrivaled. Tesla and Nio (the group referred to as "Chinese Tesla") recorded record profits: Tesla shares gained over 640%, while Nio - as much as 1%.

"This year has reflected the struggle between the online and offline worlds: technology companies have been catapulted into the future as a result of a pandemic Covid-19while many "physical" industries, such as air transport, tourism, recreation, hospitality and the automotive industry, have come under significant pressure as a result of severe restrictions and lockdowns " - says Peter Garnry, head of strategy for equity markets at Saxo.

The year will go down in the annals as the fastest stock market rebound in recent history after a sharp 34% sell-off in just 23 trading days in February and March as a result of aggressive political actions around the world.

Covid-19 contributed to increasing the share of retail investors on the stock exchanges; this trend started even before the pandemic, and was primarily driven by young people. The increasing influence of retail investors has transformed the stock markets and created new conditions that are much more difficult for traditional institutional investors.

2020 will also be remembered as Tesla's triumph, with a market value of 646% to $ 590 billion, ending this year with the highest number of shares in the history of the S&P 500. Tesla's success was driven by the increase in global electric car sales despite the pandemic and boom actions related to the "green transformation", highlighting the strong new trend in the financial markets.

The most popular stocks in Saxo Bank's offer in 2020

1. Tesla (+ 646%): Many analysts assumed that Tesla peaked in early February. For Elon Musk, however, it was only the beginning of an extraordinary year. While the 646% increase means the company has moved closer to the bubble, the new climate-friendly Biden administration may herald further profits for the electric vehicle king.

2. Apple (+ 70%): The beginning of the year was quite weak for Apple, but the company quickly recovered in the first months of this year. The pandemic has not stopped customers from buying the latest gadgets, and the iPhone 12 has some of the best sales in the company's history.

3. Nio (+1%): While Tesla is aiming to enter the Chinese market, Nio is already there. 2020 drew investors' attention to the Chinese electric vehicle manufacturer, whose value increased astronomically by as much as 1% over the year. Musk may be a media darling, but Nio is the one taking advantage of the boom. The next step will be to make your way to the European market.

4. Microsoft (+ 33%): The strategic shift towards cloud-based services has paid off. If the trend of working from home intensifies as predicted, Microsoft will be the main service provider for the coming years. This is also evident in the context of equities, which gained 33% this year.

5. Amazon (+ 67%): While many brick-and-mortar stores crashed into the wall, Jeff Bezos' owned 'everything store' didn't even budge and hired 175 people to cope with the growing number of online orders. However, global regulators are preparing some restrictions, which may mean trouble in 000.

/ YoY% YoY as of December 15, 2020 /

Source: Saxo Bank press materials